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Why Plot Projects chose to raise money with Leapfunder

Geofencing startup Plot Projects raised 600.000 dollar (550.000 euro) this month. 250k was put in by previous investors, the other 350k was raised through a campaign on Leapfunder.

Plot Projects makes tools for companies that use push messages to notice their users of something of their interest nearby. The startup let their clients (think coupon startups) optimize their campaigns so the delivered messages have more context. Thus making notifications more relevant.

The startup (which also support iBeacons) set up a mixed round of funding with previous angels and crowdfunding to quickly expand sales and worldwide presence. A special place in this deal was for the Dutch crowdfunding platform Leapfunder. Founded in 2012, the startup deals in convertible notes only.

So why choose for such a specific type of crowdfunding? And why a mixed round? “Our angels wanted to invest 250.000 dollars anyway. But our ambition was a large round with at least 200.000 euros on top of that”, said CEO Menno Kolkert to StartupJuncture.

Beyond friends, family and fools

As you can imagine, a B2B company like Plot Projects can be complex for outsiders or consumers. That’s why the startup chose Leapfunder as a crowdfunding platform – to get around the ‘friends, family and fools’ of crowdfunding backers.

“We chose Leapfunder because of the activity of mainly professional investors on that platform. Of course there are some other backers, but mostly professionals. We considered other platforms as well, but with Leapfunder setting up and completing a campaign is very approachable.”

According to Kolkert experiences from fellow entrepreneurs also made it an easy choice. “A year and a half ago, the convertible note funding type was fairly unknown. I think now it’s getting more popular every day.”

Photo by Pieter van Marion (creative commons via Flickr)

Lorenz van Gool
Lorenz is co-editor-in-chief of StartupJuncture. As a freelance editor and journalist, he writes about startups, innovation and (e)-business. Loves to report from conferences. Really likes cleantech and journalism startups. You can ask him anything about dinosaurs. Twitter: @lorenzroman

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